Shares of Adani Power rallied over 3 per cent in early trade on Thursday after US-based investment firm GQG Partners acquired an 8.1 per cent stake in the company for $1.1 billion. Adani Power shares jumped as high as 3.2 per cent to Rs 288.25 on the Bombay Stock Exchange (BSE).
GQG Partners bought 31 crore shares of the Adani Group’s energy-production company for over Rs 9000 crore.
On 16 August, Adani Power shares fell as much as 4 per cent intraday before rebounding some of the losses to settle at Rs 279.9 amid reports of a sale of 8.1 per cent equity stake.
At 11:30, Adani Power shares were trading 1.04 per cent higher at Rs 282.95 per share on the NSE. Adani Group’s flagship firm, Adani Enterprises Ltd., was trading 0.58 per cent higher at Rs 2,462.80 per share.
In March this year, GQG Partners invested $1.87 billion in Adani Enterprises, Adani Ports, Adani Transmission, and Adani Green Energy after the group lost around half its market value following the release of the US-based short-seller Hindenburg Research report. In June, the investment firm invested another $1 billion in Adani Group companies.
On Wednesday, five blocks of shares amounting to around $1 billion were traded as the ports-to-power company boosted its efforts to recover from a short-seller attack, reported Bloomberg.
In addition, two promoter companies, Resurgent Trade and Investment Ltd and Emerging Market Investment DDC, together raised their stakes in Adani Ports and Special Economic Zone (APSEZ) Ltd by over 2 per cent.
After Hindenburg Research flagged governance concerns, Adani Group firms as a whole lost around Rs 10 lakh crore in market capitalization in just a month.
However, the stocks have witnessed a sharp recovery, with Adani Enterprises surging nearly 150 per cent in the last five months.
GQG has made significant investments in Adani Group since March, taking the current value of its stake to around $4 billion.